Today's second visit to CityAM, following on the attempted economic terrorism story (plus the "Sod off, Swampy vignette).
From CityAM, January 15:
Top investors on both sides of the Atlantic could be set to pump cash into the $1trn infrastructure market as governments ramp up pressure on the private sector for investment, experts have suggested.
BlackRock, the world’s biggest asset manager, announced on Friday it would snap up the world’s biggest infrastructure investor in a bumper $12bn deal that will triple its infrastructure assets under management.
In a statement on the tie-up, BlackRock chief Larry Fink said “structural trends” were accelerating a push into the $1trn sector as politicians incentivise investment from private investors.
“We believe the expansion of both physical and digital infrastructure will continue to accelerate, as governments prioritise self-sufficiency and security through increased domestic industrial capacity, energy independence, and onshoring or near-shoring of critical sectors,” Fink said.
Both the US Treasury department and national bodies in Britain have been pushing the private sector to inject cash into infrastructure projects in recent months.
In a paper in October, the US assistant secretary for economic policy Eric Van Nostrand said investing in infrastructure could “strengthen our long-term productive capacity” and create “opportunity for Americans in disadvantaged communities”.
The statements have been mirrored in the UK as ministers and government bodies look to unlock a wave of capital from top firms.
An injection of around £40bn to £50bn a year from the private sector would result in average household savings of some £1,000 a year, better economic productivity and quality of life in the future, the National Infrastructure Commission, set up by George Osborne in 2015, said in October....
....MUCH MORE
